a calculator displaying tax saving


Small business owners make the world go round. They include the grocery store down the block, the garage down at the end of Main Street and the heating and cooling company on the corner; for decades, they have all been providing quality services to the good folks in Holland, Zeeland, Grand Rapids and other Western Michigan communities.

In most cases, these valuable community assets don’t have the enormous financial footprint that enables them to qualify for tax breaks and other government incentive programs that larger corporations can access. But there is one program that most all small businesses can qualify for that can save them a lot of money when it comes to paying year-end taxes: Section 179 Tax Cuts and Jobs Act.

Section 179 tax reform enables businesses to deduct the full purchase price of qualifying equipment from the gross income of the year it was purchased. The cap for equipment purchases has been extended to $2.5 million, while the cap for deductions is $1 million. Also, for 2018, the depreciation rate for business equipment purchases has been increased from 50% to 100% and can be expensed in the first year. In the past, small businesses could not deduct the entire expense for that year, and instead had to make partial deductions for several years. With the new regulations, if a small business makes a $100,000 purchase of qualifying equipment, it can deduct the entire amount at year-end.

Equipment purchases – new or used – that qualify for the Section 179 deduction include:

  • Machines, etc. purchased for business use
  • Business vehicles with a gross vehicle weight more than 6,000 pounds
  • Computers, computer software and office furniture
  • Property or equipment connected to your business that is not a structural component
  • Improvements to not residential buildings, such as HVAC systems and roofing, etc.

It’s important to remember that qualifying equipment purchases must be made between Jan. 1 and Dec. 31 of the tax year the business is claiming, and they must be used more than 50 percent of the time for business purposes. To better understand these tax benefits, or to get a better idea of exactly how much of a deduction can be claimed on a specific purchase, check with your accountant. But make no mistake, when it is all said and done, Section 179 benefits amount to a nice rebate.

Winter is coming friends, and if your business needs a heating system overhaul, give the professionals at Mast Heating & Cooling a call for an installation estimate on our complete line of Trane products. With the Section 179 deduction in your back pocket, it’s too good of an investment to pass up! Call us today to schedule an appointment, and don’t forget to like us on Facebook and follow us on Twitter.